Summary
Xcel Energy Inc. (XEL) subsidiary, Public Service Company of Colorado (PSCo), has filed a request with the Colorado Public Utilities Commission (CPUC) for a net increase in retail electric base rate revenue of $262 million. This request, which aims for rates effective September 7, 2023, is projected to result in an approximate 8.2% increase in overall customer bills. The filing is based on a 2023 forecast test year, a projected year-end rate base of $11.3 billion, and proposes a 10.25% return on equity. The requested increase reflects substantial investments in grid modernization and infrastructure improvements. Key areas of investment include distribution infrastructure to meet growing demand, enhanced wildfire mitigation measures, an Advanced Grid Intelligence and Security (AGIS) initiative for improved reliability, transmission expansion for renewable energy integration, and next-generation technology to strengthen grid resilience and cybersecurity. A portion of the requested increase ($50 million) involves transferring costs previously recovered through specific rider mechanisms into base rates.
Key Highlights
- 1PSCo requests a net increase of $262 million in retail electric base rate revenue.
- 2Customer bills are expected to increase by approximately 8.2%.
- 3The request is based on a 2023 forecast test year with a projected $11.3 billion rate base.
- 4Proposed return on equity (ROE) is 10.25%.
- 5Investments focus on grid modernization, wildfire mitigation, renewable integration, and cybersecurity.
- 6The rate increase includes the transfer of $50 million in costs previously recovered through riders.
- 7PSCo is seeking an effective date for the new rates of September 7, 2023.